A former National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, has hailed President Bola Tinubu for approving a 15 per cent import duty on petrol and diesel, describing it as a bold and strategic step to protect Nigeria’s refining industry and attract new investments.
Osatuyi, who spoke in an interview with the News Agency of Nigeria in Lagos on Sunday, said the policy would “strengthen the competitiveness of local refineries” and “restore investor confidence” in the downstream oil sector.
“This policy will protect local refineries, sustain upcoming modular facilities, attract foreign investors, and encourage competition among marketers,” he said.
The former IPMAN official explained that the new import tariff, approved by President Tinubu on October 29, would slightly increase the landing cost of imported fuel but deliver long-term benefits to the economy.
“The Federal, State, and Local Governments will gain from increased revenue, job creation, foreign exchange savings, and the stabilisation of the naira,” Osatuyi said.
He added that the measure was not intended as a revenue drive but rather as a protective policy to ensure that local refineries remain viable against imported petroleum products.
Osatuyi described the Dangote Refinery in Lekki, Lagos, as a “national asset and Nigeria’s energy security facility,” praising its role in reducing the country’s heavy reliance on imported fuel.
He said the refinery, with a current capacity of 650,000 barrels per day (bpd), ranked as the seventh largest in the world, and plans to expand to 1.4 million bpd would make it the largest globally.
“A responsible government must protect these massive private investments worth billions of dollars,” Osatuyi stated.
He also cited other refinery projects such as the BUA Refinery in Akwa Ibom (200,000 bpd) and several modular refineries, OPAC, Duport, Aradel Holdings (Niger Delta), Edo, Waltersmith, Azikel, Ogbele, and Abia, with a combined capacity of about 150,000 bpd, describing them as critical contributors to Nigeria’s refining future.
Osatuyi criticised the continued non-performance of government-owned refineries in Port Harcourt, Warri, and Kaduna, lamenting that more than ₦11 trillion was spent between 2010 and 2023 on maintenance and rehabilitation without meaningful output.
“It is unpatriotic that attempts to privatise these refineries in 2007 were resisted, costing the nation over ₦264 billion annually in maintenance with zero production,” he said.
He urged the Federal Government to prioritise efficiency and accountability while focusing on private sector-led refining initiatives.
Addressing public concerns about possible fuel scarcity following the new import tariff, Osatuyi assured that the Dangote Refinery alone could meet domestic demand and even have a surplus for export.
He revealed that the refinery has a storage capacity of 4.6 billion litres, 200 loading gantries, and can produce 57 million litres of petrol, 25 million litres of diesel, and 20 million litres of jet fuel daily when fully operational.
“The Dangote Refinery has the capacity to supply Nigeria’s demand and still export. There’s no basis for scarcity fears,” he stressed.
While endorsing the policy, Osatuyi cautioned local refiners and marketers against exploiting the import duty to hike fuel prices.
He urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to enforce fair pricing, transparency, and market stability.
“Regulators must be vigilant to prevent abuse of the import duty protection, fuel scarcity, or black-market activities,” he warned.
Osatuyi also commended the government’s plan to launch a centralised revenue collection system by January 2026, saying it would strengthen compliance and transparency in the downstream sector.
The former IPMAN official further applauded President Tinubu’s directive allowing local refineries to purchase crude oil in Naira, calling it a major reform that will ease operations and reduce pressure on the foreign exchange market.
“President Tinubu has again demonstrated courage and patriotism by prioritising national interest over political considerations,” he said.
“His decision to impose a 15 per cent import duty on petrol and diesel is a bold step to protect Nigeria’s economic sovereignty.”
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